Why invest in Real Estate – Retirement
Retirement is something many people look forward to, they spend the majority of their life working, spending long days at a job that they absolutely hate, missing precious time with family and friends and doing the things that makes them happy. In this article I will discuss real estate and retirement and my thoughts on the subject.
Many people think this is the way things have to be and that they can’t do anything to change it. Their parents have done it and their grandparents have done it the same way. Work work work and then when your 65 you rest and enjoy life.
Society has made this the norm and many people have accepted it. Many people think that retiring early is extremely hard and only the smart and privileged can do it.
That is some BS if you ask me!
Let me tell you, that is not the case. Do you know why I’m smiling every time I buy a rental property? Here is the reason behind that smile. Investing in real estate is easy, yes you read it right. Investing in real estate is one of the easiest things to do. BUT do you know what’s hard, it’s extremely hard spending 30 or 40 years of your entire life working at a 9 to 5 job. That my friends is hard.
Let’s jump right in. The reason I wrote this article is to show you how investing in real estate may be beneficial for your retirement. And how investing in rental properties can help you retire early.
Real Estate and Retirement
When most people think retirement they think of a job pension or 401k.
There is many ways to retire early and have a successful retirement, from job pensions, 401k plans, to real estate and list goes on and on. There are plenty to choose from, but real estate has the best track record so far. Rental properties are the most proven method to retiring early, they are the best way to create passive income. The best part is, you don’t have to spend 30 or 40 years slaving away at a boring job.
Real estate provides some of the best returns on investment you can find. From tax benefits to passive income – Click here for 5 Reasons to Invest In Real Estate.
A large number of Americas wealthiest individuals have their hands in real estate. If you want to be wealthy invest like the wealthy. Real Estate and retirement are a good combination.
Investors with their retirement prospects in mind will be looking for the best return for their money over the long term. Those who wish to use their real estate investments to prepare for their retirement will also consider the tax advantages of real estate investing, the cash flow income rental properties can return and the effective hedge against inflation that residential property investment can provide.Well, real estate is always good, as far as I'm concerned. Donald Trump Click To Tweet
The retirement age in USA is 65 and 67 for us that are born after 1960, and if you look at a general break down of 100 average 65 year old Americans these are the statistics.
* 23 are dead
* 55 are on pension or welfare
* 17 are still working
* 4 are financially independent
* 1 is wealthy and financially secure
These are sobering statistics, but it’s not all doom and gloom. Real estate investment comes in many different forms, and it’s all about choosing which suits your lifestyle, income and future goals at your particular time in life.
There are three main philosophies about investing in real estate and the impact it may have on your retirement.
Firstly, there are investors who buy 4-5 properties in their lifetime through the process of paying one off before acquiring the next. They therefore end up substituting an aged pension with their own investment income at retirement.
Secondly, there are the investors who buy property for the cash flow — which can include lease purchase arrangements. They therefore target positive cash flow properties and buy with the cash flow income it can provide for them in mind, rather than the prospect of capital growth.
The third and final philosophy is those investors who buy property for its asset value rather than its immediate cash flow. This is commonly known as negative gearing. This option means you will have to service the debt from your own income means while the mortgage is in place, but usually achieves good capital growth in the long run.
Real estate investment can be a powerful way to ground your retirement fund, but you need to do your homework and choose the property investment option that is right for you and your financial situation.
Just a couple of good real estate investments can cut down years and years off your retirement date.
Making money in any job or profession require a certain amount on knowledge and skill. This is not different when it comes down to making money with rental properties. Real estate offers you unlimited potential to make as much money as your heart desires.
As you can see I love real estate and I think every retirement portfolio should have real estate in it.
Now lets get a couple of things straight, it takes a lot of hard work, passion and energy to make money in real estate. It is not a walk in the park. Follow us on Facebook and Twitter and check out our videos on YouTube to gain the most profit from your real estate investments.